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Page | 1
Fair Trading Commission Annual Report | 2010
The Fair Trading Commission
Seychelles
Annual Report 2010
The Fair Trading Commission
Seychelles
Page | 2
Fair Trading Commission
Annual Report 2010
Presented to the Minister and the National Assembly
Pursuant to section 29 of the Fair Trading Commission Act
© Fair Trading Commission 2010
The text of this document may be reproduced free of charge in any format or medium providing that
it is reproduced accurately and not in a misleading context.
The material must be acknowledged as Fair Trading Commission of Seychelles copyright and the
document title specified.
Any enquiries regarding this publication should be sent to us at [email protected].
This publication is available for download on our website at www.ftc.sc
Page | 3
Fair Trading Commission Annual Report | 2010
…to safeguard the interest of consumers,
to monitor and investigate the conduct of business enterprises,
to promote and maintain effective competition in the
economy….
(Fair Trading Commission Act, 2009)
The Fair Trading Commission
Seychelles
Page | 4
Content Forward by the CEO ............................................................................................... 5
The Functions and Powers of FTC .......................................................................... 6
The Board of Commissioners ................................................................................. 7
FTC Management ................................................................................................. 10
FTC Major Accomplishment ................................................................................. 13
Department Report .............................................................................................. 15
Communications ............................................................................................... 16
Competition ...................................................................................................... 18
Consumer ......................................................................................................... 20
Research & Policy ............................................................................................. 21
Legal ................................................................................................................. 22
Staffing and Administration ................................................................................. 24
Training and Development ................................................................................... 27
Financial Statement ............................................................................................. 28
Page | 5
Fair Trading Commission Annual Report | 2010
Forward by the CEO
Mr. Daniel Gappy,
Chief Executive Officer of FTC
The Fair Trading Commission (the FTC) was
established in 2009 as an enforcement
agency; its main role is to safeguard the
Competition process and to promote
Consumer Welfare. FTC is the custodian of
the Fair Competition Act 2009 (FCA) as well
as the Consumer Protection Act 2010 (CPA).
With both these Acts focusing on the supply
and demand sides of the economy, the
Commission’s initial work focused on an
awareness programme with the business
communities, to familiarize them on the role
and function of the commission, to explain
business conduct that were henceforth illegal
under the Acts and to engage all parties in
complying with the requirements of the Acts,
through non- punitive measures.
The Fair Trading Commission
Seychelles
Page | 6
The Functions and Powers of FTC
The FTC is mandated to carry out, investigations
in relation to the conduct of business in
Seychelles in connection with matters falling
within the provisions of the Fair Competition Act
and the Consumer Protection Act and to monitor
commercial activities and consumer market(s) to
ensure that business practices are not affecting
the interest of consumers.
Under the FCA, the FTC is also mandated to take
action so as to prevent the abuse of dominant
enterprises, to eliminate anti-competitive
practices and to prevent or control anti-
competitive mergers.
In addition the FTC functions under the CPA are
to educate and assist consumers in resolving
complaints and to monitor standard of services
supplied by service providers.
Furthermore the FTC has the mandate to advise
the government on matters relating to the Fair
Competition Act and the Consumer Protection
Act, to make available to businesses and
consumers, general information with respect to
their rights and obligations and to undertake
studies and publish reports and information
regarding matters affecting the interests of
consumers and enterprises.
“The Commission has exclusive jurisdiction
to hear and determine matters under any
written law relating to consumer protection
and fair competition.”
The FTC has the power to carry out
investigations in relation to the conduct of
business in Seychelles to determine if any
enterprise is engaging in practices that are in
contravention of the FTCA, FCA, CPA. Such
investigations may be self-initiated by the FTC or
be carried out following a complaint. All
investigations are carried out by the staff of the
FTC.
The FTC has the power:
To hold inquiries
To administer oaths
To summon and examine witnesses
To compel the production of such books,
records, papers and documents necessary
for the purpose of the investigation
To seize documents
To make test purchases
To inspect goods
To conduct hearings
To impose remedies or financial penalties
To conduct searches and seize documents or
articles
Page | 7
Fair Trading Commission Annual Report | 2010
The Board of Commissioners
The board of Commissioners constitutes five
commissioners, headed by a Chairman, together
with the Chief Executive Officer as an ex officio
member as established by the Fair Trading
Commission Act 2009. The Commissioners,
meeting together, act as the strategic decision-
making body for the Fair Trading Commission as
an institution. They also make the decisions on all
investigations of restrictive practices under the
Fair Competition Act and the Consumer
Protection Act conducting hearings with the
parties concerned and, where necessary,
imposing directions or agreeing to undertakings.
Dr. Shelton Jolicoeur
The Chairman of FTC Board of
Commissioners
Dr Shelton Jolicoeur attended the University of
East London in the UK where he obtained his
Bachelor of Law Degree (LLB Hons) in 1985 and
the University of Warwick, UK where he obtained
a Masters Degree in Law (LLM) in 1986. In 1987
he pursued the vocational course for the Bar
Finals at the Holborn Law Tutors in London.
Dr. Jolicoeur has occupied several key posts in
government and has been extremely active in
the academic front, writing many papers which
culminated with his Doctors of Laws Thesis ‘An
Examination of the Legal Forms, Legal Status and
the Managerial Mechanisms of Public Enterprises
in Developing Countries.’ He is an Associate
Fellow of the Society for Advanced Legal Studies
(UK).
Dr. Jolicoeur is a prominent International Legal
Practitioner based in Seychelles with wide
experience in practice areas of this firm. He is
also the legal consultant to International Law and
Corporate Services LTD and Trust & Fiduciary
Services LTD both being Corporate and
International Trust Service Providers in
Seychelles. He is a regular contributor to the
Doing Business in Seychelles.
The Fair Trading Commission
Seychelles
Page | 8
Mrs. Annie Vidot
Mrs. Vidot completed her BA (Hons) in
Accounting and Finance at the London
Metropolitan University, UK in 2004, as well as
several courses in related fields: Banking &
Development, International Ireland Ltd,
Dublin/London, 2007; Compliance & Risk
Management Programme, Bakerplatt, Jersey,
2006; Anti-Money Laundering Refresher Training,
Bakerplatt, Jersey, 2006, SME Financing and
Development, Malaysia, 2010.
She has been the Loans Manager at the
Development Bank of Seychelles since 2007 and
has held several posts in the banking sector. For
instance Internal Auditor, Development Bank of
Seychelles (2005 – 2006) Project Officer/ Senior
Project Officer, Development Bank of Seychelles (
1995 -2005), Audit Assistant/ Audit Supervisor,
Ministry of Finance, 1993 – 1995.
Mrs. Dolly Tirant
Mrs. Dolly Tirant is a Chevening Scholar with an
MSc in International Banking & Finance from
Heriot Watt University, Edinburgh, Scotland. Her
first degree was a Bachelor of Commerce with a
major in Banking and Finance from the SNDT
Women’s University, Bombay, India.
For the last 9 years she has been working with
The Mauritius Commercial Bank (Seychelles) Ltd.
She is presently the Corporate Manager. Prior to
this she worked for 15 years with the Ministry of
Finance, Seychelles, in Financial Planning and
Control, Investment and Trade. Her last position
with the Ministry was Director of Financial
Services.
Mrs. Tirant is a member of the Soroptimist Club
of Victoria, an international women’s service
club recognized by the UN that promotes the
rights and welfare of women and children.
Page | 9
Fair Trading Commission Annual Report | 2010
Mrs. Jenna Thelermont
Mrs. Thelermont has been the Assistant General
Manager of Seychelles Savings Bank since 2007,
after occupying the post of Finance Manager at
the same bank for 11 years.
She has completed several studies in finance and
accounting, from AAT at the Seychelles Institute
of Management (in 1991) to ACCA at the Financial
Training Company, UK (1999). She has also
followed short courses in the subject, for
instance, Certificate in Bank Card Management,
Institute of Financial Services (2004) and Strategy
& Management in Banking Programme,
International
Mr. Phillipe Chong Seng
Mr. Chong Seng is a Chartered electrical engineer
presently engaged in electrical consultancy work.
He has extensive experience in operations and
management of utilities at government,
parastatal and private company levels.
He is presently interested in energy savings and
alternate energy issues with a view to reducing
the country’s total dependence on fossil fuels for
its energy needs.
The Fair Trading Commission
Seychelles
Page | 10
FTC Management
FTC started its operations on 1st December 2009
only with the Chief Executive Officer and the
Director for Communications and Corporate
Services. The recruitment of the director of the
Legal Department and the director for Market
Research and Policy were recruited in February
and July 2010 respectively. This was followed by
the recruitment of the Senior Competition
Analyst and the Office manager in 2010.
Other posts, for instance, those of a) Senior Legal
Officer, b) Enforcement Officers and c) one
Complaints Officer have been advertised. Short
listed candidates have been interviewed and
letters of offer have been issued. The
Commission awaits completion of formalities for
employing one Consumer Analyst and one
Complaints Officer by the end of March 2011.
Only one candidate responded to the advert for”
Senior Legal” but has not been deemed suitable.
The post will be re-advertised.
Mr. Daniel Gappy
Chief Executive officer
Mr. Daniel Gappy was appointed Chief Executive
Officer (CEO) of the Fair Trading Commission in
December 2009.
He holds a BSc in Finance and Accounting from
the Kansas State University. Later pursued a MSc
in Applied Finance at the University of
Melbourne, Australia. He has held post of
Principal Lecturer at Seychelles Institute of
Management (SIM) and Managing Director of the
Seychelles Public Transport Corporation (SPTC)
Page | 11
Fair Trading Commission Annual Report | 2010
Mrs. Luciana Lagrenade
Director of Communication and Corporate
services
Mrs. Lagrenade graduated with a Bachelor of
Education from what is now called Edith Cowan
University (1987) in Australia. In 1992, she
completed her Masters degree in English from
the University of Warwick (UK). From June to
September 1993, Mrs. Lagrenade completed a
Certificate in Measurement and Evaluation from
the University of Cambridge Local Examination
Syndicate, Cambridge, UK.
She has worked as a teacher of English and
Literature, Curriculum Development Officer,
Teacher Trainer and from 2005 – 2009, as a
Quality Assurance Officer, Ministry of Education.
Mrs. Lagrenade is also a part time Lecturer at the
Seychelles Institute of Management, specifically
for report writing, communication and
presentation skills.
Mrs. Lagrenade joined the Commission in
November 2010 as the director for
Communication and Corporate Services.
Mrs. Ellen Carolus
Director of Legal Department
Mrs. Carolus is an experienced lawyer and legal
draftsperson. She undertook her legal studies in
Mauritius where in 1997 she graduated with her
LLB (Hons) degree from the University of
Mauritius and in 2002, a Barrister’s Vocational
Course at the Council of Legal Education, from
the country’s Council of Legal Education.
She has extensive experience, both as a
practising lawyer and in drafting of laws and,
until she joined the Commission, was working in
the Attorney General’s Chambers.
The Fair Trading Commission
Seychelles
Page | 12
Ms. Juliette Dorizo
Director of Research & Policy
Ms Dorizo is a statistician who graduated with a
first Class Honors BSc in Mathematics and Applied
Statistics at the University of Plymouth's Faculty
of Technology. She won an IMA (Institute of
Mathematics and its Applications, UK) award for
outstanding performance upon completion of her
degree and received an award for best returned
graduate for the year 2001 from the Government
of the Seychelles.
Ms Dorizo started working as a statistician in the
field of Consumer Price Index and Labor at the
Seychelles National Statistics Office in 2001. In
2003 she was transferred to the Seychelles
Fishing Authority, where she worked as a
Fisheries Statistician and later on as a Senior
Fisheries Statistician until she joins the Fair
Trading Commission in July 2010.
As a statistician her expertise is in data and
database management, data processing and
analysis in addition to research.
Mr. Francis Lebon
Senior Competition Analyst
Mr. Lebon graduated with a BSc (Hons) in
Economics, Finance & Banking at the University
of Portsmouth in 2007.
Mr. Lebon started his career at the Central Bank
of Seychelles and held the post of Senior
Domestic Debt Officer in the Public Debt Unit.
Mr. Lebon was the Trade and Sales manager at
Barclays Bank of Seychelles before joining the
Fair Trading Commission in December 2010 as
Senior Competition Analyst and promoted to
Director of competition in January 2012.
Mr. Lebon also holds a Diploma in Accounting
from the Association of Accounting Technicians
(AAT) in the UK and successfully completed ACCA
Part 1. During his time at the Central Bank, Mr.
Lebon attended numerous short term courses in
Public Debt Management and in securities.
Page | 13
Fair Trading Commission Annual Report | 2010
FTC Major Accomplishment
The Commission’s moved from its temporary
location (Room 206 AARTI Chambers) to its
present location: Rooms 206, 213 and 214, on
second floor of Orion Mall, Victoria in August
2010.
Between August and December 2010, it
completed the setting up its offices and engaged
actively in staff recruitment . This resulted in the
key personnel (outlined above) being recruited.
Staff Empowerment
SADC Stakeholders Meeting
In April 2010 Mr. George Lipimile from SADC
conducted a 2 week consultancy with the
Commission where members of the
Commissioners and staff of the Commission were
empowered about the Fair Competition act
through various workshops held with various
stakeholders.
Among various topic covered, Mr. Lipimile
explained the reason for competitive market, the
benefits of competition, the objectives of the fair
competition act, and the purpose of advocacy
programs.
• Economic reforms in November 2008
• Liberalisation of the economy
• The need for a level playing field for all businesses:
• The Fair Competition Act
• The need for a system to monitor fair business practices
• The Fair Trading Commission
Figure1. Some topics covered by Mr. Lipimile
during advocacy with stakeholders
Technical Assistance from TradeCom
In September and December 2010, the
knowledge of members of the board of
Commissioners and the staff of the Commission
on the Fair Competition Act was further
enhanced through the attachment of an Expert
from the TradeCom at the Commission.
Mr. Massimiliano Gangi, an EU Consultant was
contracted to provide Technical Assistance to the
Seychelles Ministry of Finance in implementing
the Fair Trading Commission of Seychelles within
the framework of the EDF-funded ACP TradeCom
Facility.
The project aimed at strengthening the human
and institutional capabilities of the Fair Trading
Commission (FTC) of Seychelles to enforce the
recently enacted competition legislation (Fair
Competition Act and Fair Trading Commission
The Fair Trading Commission
Seychelles
Page | 14
Act). Another stated project aim was to promote
a better understanding of the existing laws and
regulations on competition and the functioning
of the FTC among all concerned stakeholders.
Overseas Seminar
The Commission’s staffs were further empowered
through attendance at various overseas
workshops to better understand the Fair
Competition Act and its implementation.
ICN Workshop
In July 2010, the CEO attended the International
Competition Network (ICN) workshop on Agency
effectiveness in the United Kingdom. The aim of
the workshop was to discuss people and
knowledge management issues within
competition authorities. These issues are central
to the development of talent and capability
within competition authorities and to the
sustained effectiveness of competition
authorities.
The discussions covered various topics such as
the culture within the agency in guiding its
mission, structure and processes, ethics and
relations with third parties, recruitment and
retention, attracting new talent, people and
career development skills building, staff
secondments/ movement of people between
competition agencies; how to capture and
disseminate learning, how to keep up with new
business practices and leadership and succession
planning.
SSNED workshop
In November 2010, the Director of Legal and the
Director of Research and Policy attended a
workshop on competitiveness strategies with
special reference to the African and Indian Ocean
small states in Mauritius. The workshop was
organized by the Small States Network for
Economic Development (SSNED) in collaboration
with the Regional Multicultural Centre for
Excellence (RMCE) and the Commonwealth
Secretariat.
The aim of the workshop was to offer high level
training on competitiveness issues to officials in
Ministries dealing with competitiveness or
related portfolios in African and Indian Ocean
small states
Participants at the SSNED workshop
SADC workshop
In December 2010, the Director of
Communications and Corporate Services and
one member of the board of Commissioners
attended the SADC workshop on competition
and consumer policy in Johannesburg, South
Africa.
Page | 15
Fair Trading Commission Annual Report | 2010
Department Report
The Fair Trading Commission
Seychelles
Page | 16
Communications
Advocacy is one of the tools of Competition authorities like FTC, to encourage compliance
with the law. Advocacy can also be explained as the bridge between ignorance of the law
and law enforcement. It means lobbying against an illegal business conduct that is either
being deliberated practiced or that businesses are engaged in out of ignorance. It is about
stressing on the need for redress until the said illegal business practice is either minimized or
eliminated.
Advocacy sessions aim to sensitize, educate and foster positive behaviour changes in the
above mentioned types of business practices, seek compliance with the law through Non
punitive measures and an understanding of how negative business practices are detrimental
to the national economy and consumer welfare.
FTC conducted several advocacy sessions between February 2010 and March 2010, to educate
the business community on the Fair Competition Act (Table1).
Advocacy session with stakeholders, April 2010. Figure 2. Topics covered in advocacy sessions,
Year 2010
Whilst not all enterprises who were invited, actually attended the sessions, those who made it their
duty to do so, commented about finding the sessions very useful to the way business enterprises
must henceforth tailor their practices, to be able to operate within the requirements of the law.
Page | 17
Fair Trading Commission Annual Report | 2010
Table 1. List of Advocacy Sessions conducted with stakeholders on FCA, year 2010
Enterprises Date Venue
Regulators
4th February ICCS
The media houses
12th February
ICCS
The media houses
10th March
ICCS
Tourism related ( car hire)
16th February
ICCS
Tourism related( Taxi Association 19th February ICCS
SPTC, PUC, Air Seychelles, Land Marine, Hunt
Deltel, Seychelles Breweries, STC, UCPS, CCCL
23rd February ICCS
Bankers 2nd March
CARE HOUSE
Association of Retailers 4th March Maison de Football,
Roche Caiman
Contractors Grade1 5th March
ICCS
Information Technology 9th March
CARE HOUSE
Contractors Grade 2 11th March Maison de Football,
Roche Caiman
Importers and wholesalers 12th March ICCS
Contractors Grade3 18th March Maison de Football,
Roche Caiman
Hotel /tourism/airlines, DMC’s 19th March CARE HOUSE
Praslin 26th March
GAP Community
Centre
La Digue 26th March
Community Centre
Praslin ( BSA) 27th March
BSA Community
Centre
The Fair Trading Commission
Seychelles
Page | 18
Competition
The FTC is the custodian of the Fair Competition Act (2009). Although not new for the rest of
the world (since the dawn of this third millennium, competition laws which were first enacted
in North America in 1890 as the Sherman Act , have been enacted and are being fully
implemented around the globe ) – the concept of competition Law is still very new to our
shores and to other countries within our region.
It is a concept that allows for competitive markets, that in turn promotes economic efficiency
and ensures that goods that the consumer wants are produced in the quantities they want,
using the most efficient production methods and are marketed and distributed to the
consumers who wish to purchase them , using the most efficient means possible.
The benefits of competitive markets favour the
economic development of the country because
they
lower consumer prices;
create greater consumer choice and
convenience;
spur innovation;
improve efficiency;
improve global competitiveness.
Since December 2010, the Commission has started conducting investigations into four alleged
infringement of the Fair Competition Act (table2). Since the Competition department only became
operational in mid December 2010, the Legal department assisted by the research department
assumed responsibilities for the competition department.
Page | 19
Fair Trading Commission Annual Report | 2010
Table 2. List of Competition Cases for year 2010
Type Received Date Status
Abuse of Dominance
Port Services Apr-10 Ongoing
Tourism Sector Aug-10 Ongoing
Restrictive Agreements
Retail Sector Oct-10 Ongoing
Merger Inquiry
Helicopter Services Aug-10 ongoing
The Fair Trading Commission
Seychelles
Page | 20
Consumer
FTC is also the custodian of the Consumer Protection Act (2010). This Act seeks to protect
Consumers’ rights, impose duties on producers and suppliers of goods and services and to
repeal the Consumer Protection Act (1997). The CPA was enacted on 29th November 2010 and
repealed the Consumer Protection Act 1997. The Act aimed at protecting consumer’s rights,
imposing duties on producers and suppliers of goods and services in the Seychelles.
The CPA aim to promote and advance the economic welfare of consumers by –
the achievement and maintenance of a consumer market that is fair, accessible,
efficient, sustainable and responsible for the benefit of consumers;
reducing any disadvantages experienced by consumers;
promoting fair business practices;
promoting fair contract terms;
protecting consumers from misleading, deceptive or fraudulent conduct;
improving consumer awareness and information.
The Act applies to any goods and services promoted or supplied in Seychelles in the ordinary course
of the suppliers business. The Act provides for a system of enforcement through compliance notices.
The Commission may:
initiate or receive complaints concerning alleged prohibited conduct;
investigate and evaluate complaints or alleged contravention of the Act;
conduct hearing and issue notices, give orders and directions
impose remedies or financial penalties
Even before the enactment of the CPA, the FTC received consumer complaints amounting to a total
of 9 complaints received in 2010. The Commission has initiated the process for staff recruitment for
the Consumer department. The director for the department and one investigation officer will
assume duty beginning of the year 2011
.
Page | 21
Fair Trading Commission Annual Report | 2010
Research & Policy
Market studies are widely used as a tool to address Competition and Consumer Protection
problems beside advocacy and enforcement. The aim of market studies is to examine how
markets are working resulting in proposals of how to make the markets work better.
Market studies are research projects conducted to gain an in-depth understanding of markets
and business practices, to better understand the consumer market and to assess consumer
experience. It involves examination of various aspects of markets that may be detrimental to
consumers, of restrictions on competition by business conducts and those that can arise from
Government regulation or public policy.
Possible outcomes of market studies include:
improvement in quality and accessibility of information to consumers,
encouraging businesses in the market to self-regulate,
making recommendations to Government to review regulations or public policy,
commitment of FTC to take advocacy and /or enforcement actions.
The studies may also conclude that the market is working well.
The Research and Policy department started operation in July 2010 and drafted three research notes
for competition cases (table 3). In addition due to exigencies of the Commission’s other priorities,
the Research department had to assume administrative and information technology related duties.
Table 3. List of Research Notes drafted, year 2010
Figure 3. Topics covered under Market Studies
Research Topic Date Started Status
Competition Law in
Port Services
July 2010 Completed
Resale price
maintenance &
franchising
October
2010
Completed
Guideline on
relevant Market
December
2010
Ongoing
The Fair Trading Commission
Seychelles
Page | 22
Legal
As per section 41 of the Fair Trading Commission Act, the legal department had the mandate to
Issue procedural rules that shall govern the conduct of hearings before the Commission to
ensure the principles of natural justice is abide to, the need for fairness to both parties and the
need for expeditious determination of any matter before the Commission.
The rules hearing rules drafted by the Legal department apply to any hearing proceedings held
–
(a) at the stage of investigation by the Chief Executive Officer and members of staff of the
Commission; and
(b) before the Board, after investigation has been carried out,
by virtue of sections 33 and 39 of the Act, section 37(1) and 47(3)of the Fair Competition Act,
2009, rule 4(6) of these Rules and section 9(1) of the Consumer Protection Act, 2010.
The procedural rules for hearing includes but not limited to the following sections:
Requirement for hearing
Summons and attendance
Conduct of hearing
Evidence on oath
Public access to hearing
Permitting other persons to take part in proceedings
Submissions or arguments before the Commission
Proceedings in absence of party
Final directions
In addition the legal department with assistance from the TradeCom Consultant drafted the Fair
Trading Commission Procedure for the conduct of investigations pursuant to Section 57 of the Fair
Trading Commission Act, 2009. These Regulations apply to proceedings relating to the conduct of
investigations of restrictive business practices falling under Part III of the Fair Competition Act. The
sections of the regulations includes but not limiting to:
Complaints and evaluation of complaints
Start of Investigations
Participation in the Investigation
Page | 23
Fair Trading Commission Annual Report | 2010
Powers of Investigation
Request for Information and Disclosure of Documents
Inspections of Enterprise Premises
Expert Reports, Statistical and Economic Analyses, and Expert Testimony
Confidentiality
Access to documents and the confidentiality of information acquired
Undertakings
Notification of the Investigation Report and the Final Hearing with the Concerned
Enterprises
Application for permission to effect Mergers Between Enterprises
Investigation of Mergers
Temporary Suspension of a Merger
Conclusion of Investigations of Merger
Request for Authorisation
The Fair Trading Commission
Seychelles
Page | 24
Staffing and Administration
FTC Structure FTC has design its operational structure which will comprised of five department being the
Competition, Consumer, Legal, Research & Policy and Communications and Corporate services
as shown in figure 1 below.
Figure 4. FTC proposed operational structure
Communication/ corporate Services Department
Advocacy
o Promote competition and protecting the competition process through advocacy, advising
Government/other bodies and the private sector.
o Promote consumer welfare through a robust sensitisation of consumers’ rights and
responsibilities that target consumers as well as suppliers
Corporate Service
o Manage the Commission’s premises ;
o Provide logistical support to the work of the Commission
o Ensure employee safety at work;
Page | 25
Fair Trading Commission Annual Report | 2010
o Oversee emergency evacuation plans and exercises and salvage operations
o Advise on matters relating to personnel.
o Advise the Commission on all financial matters.
o Design and/or develop of specific internal applications;
Competition Department
o Conduct thorough economic and financial impact analysis in market segments and
businesses in respect of competition law.
o Investigating anti-trust behaviours, structures, and practices and handling the competition
side in cases.
o The focal contact with regulators.
o Liaising with the Consumer Department as an additional means of monitoring to ensure
that markets are working well.
o Provide economic advice to the commission and assist businesses to comply with the
Competition law.
Consumer Protection Department
o Receive and assess complaints lodged at the FTC
o Conduct hearing when evaluating complaints
o Investigate and evaluate complaints and alleged contraventions of the Consumer
Protection Act 2010
o Inspect wholesalers and retailers outlets
o Issue and enforce compliance notices
o Accept and enforce undertaking under section 76 of the Consumer Protection Act
o Monitor the consumer market to ensure that prohibited conducts are prevented
The Fair Trading Commission
Seychelles
Page | 26
Research and Policy Department
o Provide Competition policy advise to the Commission
o Carry out in-depth analysis of competition policy issues
o Maintains relations with government departments and international bodies in relation to
competition and consumer policies
o Design databases, manage statistical data and conduct statistical data analysis
o Assist with economic and financial analysis
o Carry out Market studies
o Carry out research in competition and consumer related issues
Legal Department
o Advise the Commission on all legal matters including those pertaining to staff employment, the
Commission’s liability with respect to any of its acts including communications to the media
o Draft and vet contracts and other agreements which the Commission wishes to enter into
o Vet documents produced by the Commission and clear all communications to the media
o Assist with drafting of any subsidiary legislation required under the FTCA, FCA and CPA
o Assist in training other members of staff in understanding and knowing relevant laws
o Assist in the investigation of cases under the FCA and CPA and the drafting of any relevant
documentation
Page | 27
Fair Trading Commission Annual Report | 2010
Training and Development
Being a newly establish commission and the custodian of the Fair Competition Act which is new
to Seychelles, FTC main objective during the year 2010 was Staff development through training.
In 2010 four recruited staffs of the Commission and the members of the board of
Commissioners attended various workshops conducted locally by invited competition law
experts to enhance their knowledge on competition Law. The staffs were also trained in house
by a consultant from Tradecom on how to investigate Competition cases.
In addition four staffs of the Commission in addition to one member of the board of
Commissioners attended overseas workshop as shown in table 4 below.
Table 4. Overseas Duty Trip
Name of
Participants Post Workshop/ Conference
Date & Place of
Mission
Daniel Gappy CEO International Competition
Network (ICN) workshop on
Agency effectiveness
United Kingdom,
July 2010
Ellen Carolus
&
Juliette Dorizo
Director Legal
Director Research
and Policy
Small States Network for Economic
Development (SSNED) on
competitiveness strategies
Mauritius,
November
2010
Luciana Lagrenade
&
Annie Vidot
Director
Communication &
Corporate Services
Board Member
SADC competition and
consumer policy workshop
South Africa,
December
2010
The Fair Trading Commission
Seychelles
Page | 28
Financial Statement
OFFICE OF THE AUDITOR GENERAL
P.O. Box 49 - Victoria, Mahe, Republic of Seychelles Telephone: (248) 4672500 Fax: (248) 4610365 E-mail: [email protected] Website: www.oag.sc
Please address all correspondence to the Auditor General
Opinion of the Auditor General on the accounts of Fair Trading Commission
for the year ended 31 December 2010 Scope
I have audited the financial statements of the Fair Trading Commission for the year ended 31 December 2010, as set out on pages 1 to 10, in terms of Section 28 (3) of the Fair Trading Commission Act, 2009 .
The management of the Commission is responsible for keeping proper books of accounts, preparation of the statement of accounts and the information they contain. It is my responsibility to form an independent opinion, based on my audit, on those statements and to report it to the Board.
The audit was conducted in accordance with the International Organization of the Supreme Audit Institutions (INTOSAI) auditing standards. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the statement of accounts as well as an evaluation of accounting policies and significant estimates.
The audit was planned and conducted so as to obtain all information and explanations considered necessary to provide me with sufficient evidence to give a reasonable assurance that the statement of accounts are free from material misstatement, whether caused by fraud or other irregularity or error. The overall adequacy of the presentation of information in the statement of accounts was also evaluated in forming my opinion.
The audit opinion expressed has been formed on the above basis.
Opinion
In my opinion, the financial statements fairly present the financial position of the Commission as at 31 December 2010 and the results of its operations and cash flows for the year then ended.
Marc Benstrong Victoria, Seychelles Auditor General 15 April 2013
Financial Statements Fair Trading Commission Seychelles For the year ended December 2010
Fair Trading Commission Annual Report 2010
Fair Trad ing Commlaalon So y c h ol/o .
Fair Trading 'Commission
Balance Sheet
As at 31 December 2010
Notes SR SR
Fixed Assets
Office Equipment 5 249,654
Furniture 332,630
Vehicles 370,775
Computers-Hardware & Software 126,869
1,079,928
Total Assets 1,079,928
Represented by:
Transfer to Consolidated Fund 3 (100,369)
Excess Funds 1,180,297 -----1,079,928
Accompanying notes 1 to 6 form part of the financial statements
1
Fair Trading Commission Soych ollo s
Income
GaS Budget Allocation
Fair Trading Commission
Statement of Income and Expenses for the
Year ending 31 December 2010
Notes
2(c)
SR SR
Expenses
Wages and Salaries
Office Running Costs
Repairs & Maintenance
Transportation Costs
Other Costs
Specific Costs
Total Expenses
Excess funds before minor capital outlay
6 (a)
6 (b)
6 (c)
6 (d)
6 (e)
6 (f)
1,819,268
838,562
12,526
125,894
65,012
539,994
(3A01,256)
1,180,297
2
Fair Trad ing Commissio n Saye/lOllo s
Fair Trading Commission Statement of Cash Flow
Year ended 31 December 2010
Cash Flow from operating activities
Operating activities
Adjustment: Depreciation
Net cash used in operating activities
Cash Flow from investing activities Office Equipment Furniture Vehicles Computers (Hardware & Software)
Net cash flow from (used in investing activities)
Cash - end of year (Transfer to Consolidation Fund)
SR
1,180,297
51,557
1,231,854
(264,405) (353,473) (377,059) (136,548)
(1,131,485)
100,369
3
Fair Trading Commission Sey c h e ll e s
Total Furniture - 353,473 - - 353,473 - 20,843 - 20,843 332,630
Office Equipment
9001 Aircon - 36,295 Jul-lO - 36,295 20% 3,630 - - 3,630 32,666 Photocopier
9001 (canon) - 33,100 Aug-10 - 33,100 20% 2,758 - - 2,758 30,342
9001 Aircon - 99,132 Oct-10 - 99,132 20% 4,957 - - 4,957 94,175
9001 Aircon - Spendid - 49,925 Nov-10 - 49,925 20% 1 ~664 - - 1,664 48,261
9001 Aircon - 31,303 Dec-10 - 31,303 20% 522 - - 522 30,781
9001 HPColour Laser - 14,650 Aug-10 - 14,650 20% 1,221 - - 1,221 13,429
Total Office Equipment - 264,405 - - 264,405 - 14,751 - - 14,751 249,653
Vehicles
9004 KIA PICANTO 5 7784 - 230,642 Dec-10 - 230,642 20% 3,844 - - 3,844 226,798 KIA SPORTAGE 5
9004 7488 - 146,417 Jan-ll - 146,417 20% 2,440 - - 2,440 143,977
Total Vehicle - 377,059 - - 377,059 - 6,284 - - 6,284 370,775
Computer Hard/Soft Ware Dell Optiplex/18.5
9005 WS/Laptop bag - 13,190 Feb-10 - 13,190 20% 2,418 - - 2,418 10,772
9005 Laptop - 12,675 May-10 - 12,675 20% 1,690 - - 1,690 10,985
9005 Computers - 13,500 Jul-10 - 13,500 20% 1,350 - - 1,350 12,150
9005 Computers - 25,300 Aug-10 - 25,300 20% 2,108 - - 2,108 23,192
Computers 9005 (desktop) - 9,990 Aug-10 - 9,990 20% 833 - - 833 9,158
9005 Printer - 5,850 Aug-10 - 5,850 20% 488 - - 488 5,363
5
Fa ir Trad ing Commission S e ych elle s
9005 Website - 24,700 Dec-l0 - 24,700 20% 412 - - 412 24,288
9005 Laptop - 16,850 Dec-l0 - 16,850 20% 281 - - 281 16,569
9005 Fax Machine - 2,768 Dec-l0 - 2,768 20% 46 - - 46 2,722
9001 Computer Network - 11,725 Aug-10 - 11,725 20% 54 - - 54 11,671
Total Computer Hard/Soft Ware - 136,548 - - 136,548 - 9,679 - - 9,679 126,869
TOTAL 1,131,485 1,131,485 51,557 51,557 1,079 ,928
6
Fair Trading Commlsalon Soyc h o ll o s
Fair Trading Commission
Notes to the Financial Statements for the year ended 31 December 2010
1. Establishment, principal activity and registered office
The Fair Trading Commission (the "Commission") was established in Seychelles under the provisions of The Fair Trading Commission Act 2009.
The principal activities under the Act are "to safeguard the interests of consumers, to monitor and investigate the conduct of business enterprises, to promote and maintain effective competition in the economy".
The Commission's principal place of business is situated at Orion Mall, Victoria, Mahe, Seychelles.
2. Significant accounting policies The financial statements, expressed in Seychelles rupees, have been prepared under the current cash basis except for the provision for depreciation which is in accordance with Governmental Financial Reporting.
a. Receivable The Commission's accounting policy does not make provision for receivable as all transaction is on cash basis.
b. Minor Capital Outlays Non-Current Assets are stated at book value with depreciation calculated on reducing balance method.
The useful lives of the assets are estimated as follows:
Office equipment 1- 5 years Furniture 5 years Vehicles 5 years Computer Hard/Soft ware 1-5 years
c. Income recognition Income is recognised on the following bases:
i. Funds voted for its use by the Government of Seychelles
ii. Funds received for the purchase of assets are capitalised as income in the year of
acquisition and recognised over the useful lives of the assets.
iii. The budget allocation of SR3.58M was granted and additional funds of SR1M were
granted for the year 2010.
7
Fair Trading CommIssion Soychollos
d. Taxation The Commission has not yet been exempted from tax; however, we have a letter from the Ministry of Finance and Trade that the Commission does not qualify for payment of Business Tax.
3. Treasury Account and Petty Cash The surplus of SR 100,369 from operation is transferred to the Treasury Consolidated fund at
the end of the financial year 2010.
4. Accounts Receivable In accordance with governmental accounting all transactions are based on cash basis. No
accounts receivable are recorded .
5. Refurbishment of office and equipment With the establishment of the Commission in January 2010, it was temporarily based at Aarti
Chambers sharing office space with Energy Commission until July 2010. The Commission moved
into its premises at Orion Mall in August 2010. Prior to moving, works carried out to partition
rooms 206/213/214, install air conditioning and electrical works were conducted which has
been adjusted as expenses. Costs of Non Current Assets items related to functioning of the
Commission:
Office Equipment
Furniture
Vehicles
Computers-Hardware & Softwares
Total
6. Operating expenses
a) Salaries and Wages
Personnel Emoluments Board of Commissioners' Allowance Total
SR
249,654
332,630
370,775 126,869
1,079,928
SR
1,395,268 424,000
1,819,268
8
Fair Trading Commission So ych o ll o .
b) Office Running Costs
Electricity Water Telephone/Fax/Internet Postage Insurance Printing & Stationery Rent Cleaning Expenses Consumables
Total
c) Repairs and Maintenance
Repairs & Maintenance Office Equipment Repairs & Maintenance Others
Total
d) Transportation Costs
Fuel Domestic Airfare Bus/Taxi/Ferry Fares Overseas Airfares Overseas & Other Subsistence Allowance Hire Charges for Vehicles Transportation Costs
Total
e) Other Costs
Entertainment Newspaper, Magazines & Periodicals Advertisements & Donations Staff Welfare Training Expense
Total
SR
21,137 1,096
69,022 3,051
21,000 26,390
666,350 13,877 16,639
838,562
SR
9,052 3A74
12,526
SR
45,360 lA85
200 6A74
59,525 10,340
2,510 125,894
SR
18,928 6,160
18A50 5J94
15,680
65,012
9
Fair Trading CommIssion Se ych e ll e s
f) Specific Costs
Others Literature Supplies Workshop/Seminars Internet Consumer Protection Unit Depreciation Charges Refurbishment Costs
Total
SR
5,325 24,904 27,699 13,723
292,757 51,557
124,029
The budget allocation for the Consumer Protection Unit was incorporated together with the Commission's budget and following the establishment of the Fair Trading Commission, the Consumer Protection Unit discontinued mid-year 2010.
10
The Fair Trading Commission
Seychelles
Page | 30
Fair Trading Commission
Room 206, 213, 214
2nd Floor Orion Mall
Victoria, Mahe, Seychelles
Tel: (+248) 325250
Fax: (+248) 325239/ 325240
Email: [email protected]
The Fair Trading Commission Seychelles